Logical Steps to Buying Office Space

    Rupesh Gupta
    By Rupesh Gupta

    Buying an office space can be a complex process. It needs knowledge, skills and diligence. There are few steps you should ideally follow.

    First of all, arrange financing. This is a major step as buying an office space in Noida Sector 140 or similar premier location can mean a lot of money. It is even more expensive than buying a residential property at the same location. See how much money you have and how much loan you can get. Also, calculate the exact amount of money you will need to close the deal. Banks calculate Loan to Value (LTV) and Debt Coverage Ratio (DTR) along with the credit record of the borrower to decide on the loan amount. You need to present a good file to the loan officer so that you get the desired amount.

    Finding an agent for your purpose is the next logical step. He will help you in finding, selecting and finalising a property in your desired location. He can act like a bridge between the sellers and you. He will note down your exact requirements, your budget and help you avoid costly mistakes.

    Now that you are ready, proceed to making the offer. Your agent will provide you with a long list of properties and you have to scan through it to finalise a few. When you have the list of properties which meet your criteria, make your offer to the agent who will contact the sellers with the same. The offer letter will carry the price, the financing, due diligence period and security deposit amounts etc.

    Final step of this process is to close the deal. Once the seller has accepted your offer, move to making the payment. The agent can work as escrow service here, if he is reputed. Else you can hire an escrow service to help you in this process. As 20 percent of the agreed price is usually the initial payment, if you are buying it on EMI, you need to have that amount ready by yourself. Show the approval letter to the financing institute who will disburse the remaining amount and you can buy your property.

    All these steps will help you if you are searching for a property in India. In India, the commercial property rates are growing too fast and a decent property within budget is becoming a scarce commodity. Hiring an agent, with experience and credibility, can make your job easier but you should be in control even then.

    Source: http://www.sooperarticles.com/real-estate-articles/property-investment-articles/logical-steps-buying-office-space-1442845.html

    Rupesh Gupta

    Rupesh Gupta

    Rupesh Kumar is an eminent writer who features years of experience in real estate writing.